Container market Report February 2012

At last I left for Taipei on Jan. 30 (Mon) by JL031 at 8:40 am from Haneda Airport. As Mr. Nam, President of FBC asked me early Jan. to go to Taipei with him to promote Hybrid Open Top Container and Sliding Door Container to Taiwanese Shipping lines I was willingly to accept his offer. There are 4 shipping lines in Taiwan such as Evergreen Line, Yang Ming, Wan Hai Lines, TS Line who showed their strong interest in Hybrid Open Top Container. We want them to make sure of Hybrid Open Top Container to shorten the operation time and quite safe in actual operation by their actual use in comparison with the ordinary Open Top Container. It is our mission this time.

It is for the first time in 34 years for me to visit Taiwan. 9.5% of Japan’s territory in a size and 23 million people in the population. It was my long dream for me to see the change after 34 years in Taiwan where there are many pro-Japanese living.

EFI bought the small number of their old MHI 40f HC Reefer on sale ex Osaka when EFI started. Since then I have arbitrarily kept sending my monthly market report to several people of Evergreen Line to get them know container market is from my point of view. After several months Mr. W took the trouble to call me from Taipei to kindly ask me to come to Taipei. At the same time I longed for seeing Mr. L of Wan Hai Line whom I once played golf in Shanghai in 2007 during my working for the leasing company as I heard that he is the head of container operation in Taipei. In addition, one of my old friends, Mr. T, the owner’s rep of TS Line Tokyo could strongly support me to introduce whom I should meet if I go to Taipei. I also wish to see Mr. C, ex President of Yang Ming Japan who returned to Taipei long time ago. There were the several reasons to urge me to go to Taiwan.

The airplane was full of people with the families with children and businessmen. It was about 4 hour flight to Songshan Airport in Taipei. Taipei has changed to the modern city symbolizing the skyscraper of the Taipei 101. The expressways have been constructed in all directions and there are many places under construction to extend the service of which the public works have surely been strengthening Taiwan economy. The streets of Taipei city have been beautifully lined up with the palm tree as a tropical ambience. It was hard to find anything similar to the past image left in my mind in the streets between many high-rise buildings for a couple of days. However it was quite impressive to see that many old buildings built during in reign of Japan have been kept as the historical monuments. In addition, we could know how they favor Japan if you see over 80% of Japanese cars on the street which would make me feel that I am in Japan.

According to my impression after meeting with people of Taiwanese 4 shipping lines they have been aggressive in challenging the innovative design of container such as Hybrid Open Top and Sliding Door Container so that our individual meeting with Evergreen, Yang Min and Wan Hai respectively were filled with 7~8 staff participated. Their management wants as many staff as possible to share the information and to discuss unclear points, merit and demerit of adopting it and so on within limited time and then they would come to the conclusion. I was quite surprised to see in the process of their quick decision. They would have probably done everything possible before meeting with us. However, I would admire Mr. Nam of FBC who laid the groundwork for this meeting over many months.

I would like to express my appreciation to people of Taiwanese shipping lines who joined the lunch and dinner with us during busy time right after Chinese New Year. The youth of Taiwanese shipping lines were polite and smart as the same as Korean youth. Is it caused by conscription? There would be right and wrong in conscription. However it would be the asset not only to the individual but to society in the long run for the youth to experience the training in making him grow before a member of society. They have something which Japanese don’t have. Japan adopted “Education free of pressure” in the past 20 years (ended in 2011) against the cramming system of education. It will be necessary for us to verify “Education free of pressure” to prove how it had changed Japan unfavorably. Your hardship experienced in youth could be turned into the treasure as the proverb of “Strike while the iron is hot”. This is truth. It was pleasant for me to talk with Taiwanese young men because of polite and smart. Some of them have special attachment to Japan so that they have been studying Japanese. They are the pro-Japanese who are valuable to us.

The Nikkei reported on Feb 10 that Purchasing Manager’s Index (PMI) shows Nov.2011 at the bottom and continuously improved for 2 months till Jan.2012 so that the world manufactures have been in upturn. Germany shows the improving sign and China has improved for the past two months. Employment, personal consumption and housing investment in USA have accelerated GDP of Oct to Dec, 2011 by 2.8% over the previous year which is good news. The major 6 countries (Indonesia, Thailand, Malaysia, Philippine, Vietnam and Singapore) in Southeast Asia have recorded that the number of new car sales have increased by 4% comparing to the same period of the last year to about 2.59 million cars. According to Ministry of Commerce of the People’s Republic of China the turnover of all retailers in China during Chinese New Year has recorded by 16.2% against the corresponding period last year to 470 billion RMB(about 5.7 trillion Yen). I would venture to mention only favorable figures but the world economy would be more steadily recovered in 2nd half of the year onwards.

The number of new containers all over China seems to have been reduced to 400,000 teu and the new production price would be around $2300 per 20f. Each leasing company has still kept 95%~97% in utilization. Chinese Container makers seem to have felt relieved with this news. Shipping companies seem to have begun seriously considering long term lease from leasing companies.

My one week trip would end up to Hong Kong. The beautiful lady at the check-in counter of Cathay Pacific kindly upgraded our economy seats to the business seats when we flew from Taipei to Hong Kong. She has instantly made me the pro-Cathay Pacific. I involuntarily replied to her that I would take Cathay for my next trip. She returned her beautiful smile to me. It should contain the quintessence to grab the heart of their guest in her service including her smile. The same service spirit must be effective to our business.

Traveling teaches me various things. It will give me chances to encounter many people and become friends with them. The circle of friends’ friend will ensure my power stronger in business as well as in private. Traveling makes me feel young because people I meet are usually young. I wish to travel more this year in order to make myself stay younger.